Holmes Cleaning Service began operation on January $1,$ Year $1.$ The company experienced the following events for its first year of

operations:

Events Affecting Year $1$:

Provided $$210,000$ of cleaning services on account.

Collected $$157,500$ cash from accounts receivable.

Paid salaries of $$34,000$ for the year.

Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $$2,000.$ The expense

was determined using the percent of revenue method.

Required

a$.$ Organize the transaction data in accounts under an accounting equation.

b$.$ Prepare an income statement, a balance sheet, and a statement of cash flows for Year $1.$